Penske buys VM

Automotive Industries, March, 2003

The European Commission has approved the purchase of a stake in Italian engine maker, VM Motori SpA, a unit of DaimlerChrysler AG by Penske Corp. VM Motori manufactures approximately 70,000 diesel engines annually. The deal was approved under the Commission's simplified antitrust procedure. This clears mergers or acquisitions after one month if no objections are raised by third parties.

There has been speculation that when DaimlerChrysler bought Detroit Diesel Corp. from Penske that the VM operations were not to be included in the sale. The two companies eventually decided to include VM in the DDC sale and to revisit the ownership of VM at some point after the sale. Apparently that point has now been reached.